The Telangana High Court recently held that the Employees' Provident Fund Organisation (EPFO) cannot ask a retired employee to pay back his PF dues, even if the company disbursed the funds after surrendering its exempt trust status. The high court said that if the EPFO needs to pursue legal action, it may do so against the company and its PF trust for violating the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
This judgement (dated May 5, 2026, case no. WP No. 6276 OF 2025) came against the backdrop of a case filed by Mr J.V. Nrupender Rao, an employee who retired in 2023. At the time of his retirement, he received Rs 2.5 crore in part payment of his provident fund (PF) dues from his employer, who previously held exempt trust status.
